Question

23. K Lain owns a bakery shop. Which of the following are capital expenditure?
1.motor vehicle
2.petrol for motor vehicle
3.shop fixtures
4 wages of bakers

a.1 and 3
b.1, 2 and 3
c.2 and 4
D2,3 and 4​

Answer 1

Answer:

a) 1 and 3

Explanation:

Capital expenditure means fixed assets like land, buildings and equipments. Thus, motor vehicle (for delivery) and shop fixtures (renovating the bought store) comes under the category. Therefore, the answer is option a).